Consumer preferences for alternative fuel vehicles in South Korea

摘要

The paper analyses consumer preferences for alternative fuel vehicles based on stated preference data gathered in South Korea. Five fuel type vehicles are considered in the analysis, and a mixed logit model using the Bayesian approach was used for the estimation. Estimation results show that preferences regarding fuel type and body type are heterogeneous, but preferences for cost variables and horsepower are relatively homogeneous across consumers. The results also show that an indirect network effect exists, influencing automobile demand. Simulation results show that diesel and hybrid vehicles will compete in the future for their shares of the market, with lower costs being the main source of competitiveness. Elasticity results show that fuel and maintenance costs are the most important factors influencing choice among alternative fuel vehicles and that an indirect network effect is important as well.